Over a third (35%) of respondents to an industry study said future IT investment was needed to make them compliant with impending regulation - with only half (52%) claiming they currently meet the requirements of upcoming directives.
Reinsurance industry experts claim technology is also key to navigating a number of problems, which include dealing with soft market conditions, competition from third party capital and changes to law.
“Being confronted with this barrage of fundamental changes is a challenge and, it is not surprising that reinsurers are turning to technology to help them navigate their way through these choppy waters,” the report said.
The study also found that two thirds of respondents agreed with the statement, ‘technology drives the success of my business’, with just over a fifth (21%) feeling impartial, and 13% disagreeing.
The report also said that technology was helping to automate pricing tools and integrate workflows in order to better co-ordinate interactions with third parties.
“The reinsurance industry must allow resources from industries outside its own to help secure its future success. As it approaches this crossroads, longevity in the industry is likely to rest heavily on the technology decisions and strategies that are taken today,” the report added.